When You Borrow Stock from a Broker and Sell It

question 4

Multiple Choice

When you borrow stock from a broker and sell it now with plans to buy it back after it drops in price,you are engaging in a(n)

• A) margin call.
• B) European option.
• C) American option.
• D) short sale.

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Definitions:

Biologically Inherited

Traits or characteristics that are passed from parents to offspring through genes, including physical attributes and susceptibility to certain diseases.

Culturally Constructed

A concept or practice that is created and maintained within a culture, reflecting the values, norms, and beliefs of that culture.

Enculturation

The process by which individuals learn and adopt the values, norms, and practices of their culture through socialization.

Cultural Relativism

The idea that one must suspend judgment of other people's practices to understand them in their own cultural terms.